Egypt's Inflation Hits Record Low at 9.2%

Egypt's Cabinet Media Center published an info-graphics that shed light on the progress of achieving a single-digit inflation rate estimated at 9.2% for the first time in 6 years.

Besides, data showed that the monthly inflation recorded negative rates for the three months, before 2020, following the drop in food prices.

The infograph showed a decline in the Consumer Price Index (CPI) for All Urban Consumers to record 9.2% in 2019 compared to 14.4% in 2018, 29.5% in 2017, 13.8% in 2016, 10.4% in 2015 and 10.1% in 2014.

The monthly rate of inflation dropped to -2% in December 2019, compared to -3% in November 2019, 1% in October 2019, zero in September 2019, 7% in August 2019, 1.8% in July 2019, and -8% June 2019.

According to the infographics, food commodities achieved negative rates or a notable decline in prices in five months during the year 2019 to record -5% in December 2019, compared to -1.5% in November 2019, and -1.8% for both October and September 2019, 1% in August 2019, 8% in July 2019, and -2.2% in June 2019.

The graph also showed examples of the most important food commodities, whose prices witnessed a decline, including local and imported meat. The price of beef and buffalo meat decreased by 16.2%, sheep meat by 12.3%, buffalo meat by 4.2%, and frozen imported beef by 2.1%.

Concerning the group of fish and birds, the prices decreased by 9.5% for frozen fish, and 4.8% for the farm chicken.

The group of groceries and spices also witnessed a decrease in their prices, as the price of the peppercorn decreased by 27.3%, municipal rice by 10.9%, wheat flour by 9.4%, coriander by 7.4%, and bee honey by 5.3%, while the butter dropped by 3.4%.

Also, the group of fresh vegetables and fruits decreased, bringing the guava down by 20%, green pepper by 11.4%, eggplant by 4%, onion by 1.8%. As for the group of grains and legumes, the price of wheat decreased by 14.7%, and lentils by 9.2%.

The infographics also highlighted several acclaims from international institutions, such as the International Monetary Fund (IMF), praising the monetary policy of the Egypt's Central Bank (CBE) and stressing its successful containment of inflationary pressures that followed the liberalization of the pound and energy subsidy reforms.

On its part, the World Bank indicated that Egypt's inflation has declined dramatically, paving the way for further monetary easing, as Bloomberg said that low food prices confirm the country's success in containing inflation with the annual rate approaching the central bank’s target of 9%. (± 3) at the end of 2020.